FIGHTING FRAUD AND REDUCING AUTOMOBILE INSURANCE
RATES ACT, 2014 Wednesday 30 April 2014
FIGHTING FRAUD AND REDUCING AUTOMOBILE INSURANCE
RATES ACT, 2014 Wednesday 30 April 2014
There’s no shortage of issues for Ontario’s June 12 election: Out of control hydro prices, the sad state of the economy, pension reform, transit funding and, of course, all the Liberal scandals.
Once again, the issue of auto insurance reform is likely to be left at the curb with no party championing those injured in auto accidents.
It’s a pity as the state of Ontario’s auto insurance cries out for reforms to protect accident victims. http://www.torontosun.com/2014/05/09/we-need-insurance-reform
According to law society documents, Vinti Sansanwal, at the time national claims director with HB Group insurance in Mississauga, would approve personal injury files for hundreds of thousands of dollars more than what had been negotiated with claimants.
Pachai, acting as the lawyer for the insurance company, altered documents to reflect the inflated bogus amounts, while sending off the true lower amounts to claimants. In one case, a claim was settled for only $5,000 but Pachai doctored the documents sent to the company to show it was $225,000.
The law society says Pachai and Sansanwal then split the excess settlement funds on a 50-50 basis. They did this 11 times between 2005 and 2007. The law society found Pachai kept close to half of the $1.5 million the scam raked in.
DesRoches continues that “it might be easier to think of those tens of thousands of people lined up at FSCO to have hearings as fakers and malingerers but the numbers don’t lie, they are a reflection of a broken system and not a reflection of rampant fraud in the system.
http://www.insurancebusiness.ca/news/fair-cries-foul-over-bill-171-hearings-177622.aspx
Provincial NDP Blocked Appointment to Financial Accountability Office, Stalled Legislation to Lower Auto Insurance Premiums
http://www.saultonline.com/2014/05/horwath-misleads-voters-orazietti/
Canadian auto insurers have a major problem with insurance fraud. The problem is also worsening substantially every year, and in Ontario alone it has reached a price tag of $1.6 billion a year (Robertson & Perkins, 2011)
http://www.ctvnews.ca/politics/is-the-government-checking-you-out-on-facebook-1.1812110
Workers’ advocates charge that hundreds of injured workers have, like Harris, been denied benefits for pre-existing medical conditions since 2010, when the former Dalton McGuinty government appointed David Marshall as WSIB president.
They blame Marshall’s marching orders “to reduce and ultimately retire” the board’s $12 billion unfunded liability, the difference between current funding levels and long-term payouts to injured workers. They say this financial imperative is behind a proposed new WSIB policy on pre-existing conditions that would “fundamentally change” the system and throw thousands of injured workers into poverty.